Use a demand and supply graph of the wool market to show the effects of the decrease

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Use a demand and supply graph of the wool market to show the effects of the decrease in the price of wool on the quantity supplied in New Zealand. Assume that the initial price is $20 per unit and the initial quantity is 100 units. Also assume that for each 1 percent decrease in price, the quantity supplied decreases by 1 percent.

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Macroeconomics Principles Applications and Tools

ISBN: 978-0134420684

9th edition

Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez

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